Aluminum trade groups from Canada, Europe, Japan, and the US have urged leaders of the G7 to revisit the current subsidy rules to ensure fair trade across the world.
The associations, citing a new report by the Organisation for Economic Cooperation and Development (OECD) in a media statement on Wednesday, noted that the G7 governments have given significant support to subsidies, most of which went to Chinese exporters in the range of 4-7pc of their annual revenue. Other firms, in the meantime, received only 0.2pc in subsidies.
These subsidies provided over the years have not only resulted in supply exceeding demand but have also threatened the viability of companies that did not enjoy these breaks, according to the joint statement issued by the four associations.
They added that environment-friendly recycling and production systems in Europe, Canada, the US, and Japan could ensure reliable supplies sustainably, especially if the trade rules were modernized to include them.